Mark W. Jordan Powers of Attorney Law Blog on Lawyers.com

This is the third of a series of articles providing helpful information on estate planning.  Please contact the estate planning professionals at The Drew Law Firm for more details on any of these topics or for any of your estate planning needs.

              
60;                & #160;                 ;       Durable Power of Attorney

Q:  Why is a Durable Power of Attorney useful in estate planning?

A: This is a legal document in which you designate an individual (called your attorney-in-fact) to act on your behalf in any of the matters that you would handle if you were present and not incapacitated.  Your attorney-in-fact will carry out your intentions concerning banking, business, gifts, investments, insurance, and other estate planning procedures.  Since your attorney-in-fact may manage your financial affairs, you may choose not to spend the funds necessary to establish a revocable trust.  You may also be able to avoid the costly court proceedings of appointing and supervising a guardian.  Whereas the guardian is under the strict supervision of the court, the attorney-in-fact is not subject to expensive court procedures and related time delays.

Q:  How long is the Durable Power of Attorney effective?

A:  The Power of Attorney will continue until your death or your earlier revocation of the power.  It is called durable because it does not lapse with your incapacity.

Q:  What powers can you specify in a Durable Power of Attorney?

A: Since there is tremendous flexibility in drafting a Durable Power of Attorney, you may provide for any or all of the following powers:

   1.  Make deposits, withdrawals, cash checks, and borrow money.

   2. Run your business, including hiring and firing employees, purchasing, and selling assets, and executing and serving contracts.

   3. Prepare and file tax returns and any other government forms and pay the requisite taxes, penalties, fees, and interest.

   4. Employ attorneys, investment counsel, accountants, doctors, nurses, specialists, home health aides, and other appropriate personnel.

   5. Purchase or sell cars, homes, and any other property.

   6. File suit, arbitrate, settle, and collect or pay on any claims.

   7. Purchase insurance and pay premiums.

   8. Any other powers permitted by state law.

Q: Is the Durable Power of Attorney different from the Power of Attorney for Health Care?

A: Yes.  The Durable Power of Attorney deals with all of the financial issues.  The Power of Attorney for Health Care handles medical issues.  The next article in this series will provide more details on the Power of Attorney for Health Care.